Understanding the impacts of Chinese business activity in Kenya from the perspective of locals: An exploratory field study

Abstract

Purpose

The authors report a field study examining the perceptions of Kenyan host-country stakeholders toward activities of Chinese businesses in their country, and the consequences of this on the legitimacy that they bestow on pertinent entities.

Design/methodology/approach

Interviews and observations across an eight-week period of field research revealed generally negative attitudes toward Chinese businesses, with issues pertinent to moral legitimacy prominent, notably, perceptions of corrupt practices, environmental neglect and profit expatriation.

Findings

The authors also find evidence that these negative attitudes spilled over to contaminate Kenyans’ perceptions of their own government, which respondents associated closely with the activities of Chinese entities.

Originality/value

The authors extend understanding of legitimacy theory and the implications of foreign business activity by highlighting that businesses may be mistaken to believe that their international business activities are politically neutral, and while host governments may believe that the economic benefits arising from attracting foreign business activity can buttress their legitimacy, the perceived activities of these businesses, in the absence of supporting institutional frameworks, may render this counterproductive.

Citation

Okumu, C.O. and Fee, A. (2019), "Understanding the impacts of Chinese business activity in Kenya from the perspective of locals: An exploratory field study", Critical Perspectives on International Business, Vol. 15 No. 4, pp. 361-389. https://doi.org/10.1108/cpoib-06-2019-0037